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106 · Question #53

Which is an example of a performance metric that can be used to assess the impact of portfolio management?

The correct answer is D. Percentage of initiatives delivered on time and/or budget compared within initial forecasts. Option D is correct because portfolio management operates at a strategic level, overseeing multiple initiatives simultaneously, and measuring the percentage delivered on time and/or within budget directly reflects the portfolio's effectiveness at coordinating and governing those

Understanding the portfolio management practices

Question

Which is an example of a performance metric that can be used to assess the impact of portfolio management?

Options

  • APercentage of milestones being achieved during a projects life cycle compared with the planned
  • BThe successful delivery of linked projects and transformation activities to achieve an intended
  • CPercentage increase in the number of customer complaints received during the implementation of
  • DPercentage of initiatives delivered on time and/or budget compared within initial forecasts

How the community answered

(25 responses)
  • A
    4% (1)
  • B
    8% (2)
  • C
    12% (3)
  • D
    76% (19)

Explanation

Option D is correct because portfolio management operates at a strategic level, overseeing multiple initiatives simultaneously, and measuring the percentage delivered on time and/or within budget directly reflects the portfolio's effectiveness at coordinating and governing those initiatives against their original forecasts - a classic, quantifiable portfolio KPI.

Why the distractors are wrong:

  • A focuses on milestone tracking within a single project's lifecycle, making it a project-level metric, not a portfolio-level one.
  • B describes a qualitative benefit or outcome (transformation delivery), which is closer to benefits realization than a measurable performance metric.
  • C measures customer complaints - an operational or service quality indicator - which reflects implementation problems, not portfolio management performance, and an increase in complaints signals failure, not a management metric.

Memory tip: Think "Portfolio = the whole scoreboard." A good portfolio metric must be aggregated, quantifiable, and forecast-based - D is the only option that checks all three boxes. If an answer sounds like it belongs on a single project's status report (milestones, complaints), it's too granular for portfolio level.

Topics

#Performance Metrics#Portfolio Delivery#Initiative Assessment#On-Time/Budget Compliance

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